KUALA LUMPUR – The government has agreed to remove the ceiling amount for construction sector disputes under the Covid-19 Mediation Centre (PMC-19), previously set at RM500,000.
Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Wan Junaidi Tuanku Jaafar said in a statement that the abolishment of the limit only involved cases in the construction category.
“The limits for other categories remain at RM500,000. This initiative will hopefully assist the recovery of problematic projects and stimulate the country’s construction industry,” he said.
According to Wan Junaidi, feedback received from engagement sessions between the Legal Affairs Division of the Prime Minister’s Department and key construction sector players found a need to review the amount limit in construction disputes at PMC-19.
The measure is in support of the amendment to Act 829 that took effect since January 14 this year allowing contractual disputes of any category to be referred to PMC-19 without being subject to the nine categories set previously, he added.
He expressed hope that Malaysians with any contractual disputes, including those in construction contracts resulting from the enforcement of movement controls under the Prevention and Control of Infectious Diseases Act 1988 since 2020, would resolve their disputes properly without involving legal proceedings in court through the mediation services offered by PMC-19.
Wan Junaidi said PMC-19, established after the Covid-19 outbreak hit the country, has helped the public and business entities resolve disputes arising from the inability to implement contractual obligations due to the measures taken by the government under the Prevention and Control of Infectious Diseases Act 1988.
Based on Section 9 of the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020, the minister in the Prime Minister’s Department (Parliament and Law) is allocated power to determine the mediation process, the appointment of mediator, the role and other aspects of mediation, he said.
Those looking to contact PMC-19 can do so by calling 03-8872-7070 or visiting the website www.pmc19.gov.my, he added. – Bernama, March 9, 2022
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